The Analytical Overview of the Main Currency Pairs on 2018.08.01

The EUR/USD currency pair

Technical indicators of the currency pair:

Prev Open: 1.17033

Open: 1.16820

% chg. over the last day: -0.15

Day's range: 1.16766 – 1.16911

52 wk range: 1.0571 – 1.2557

During yesterday's trading session, there was a variety of trends on the EUR/USD currency pair. Yesterday, important economic statistics from the US and the Eurozone were published. Today, investors took a wait-and-see position before the Fed interest rate decision. It is expected that the regulator will leave the interest rate unchanged at 2.00%. At the moment, the technical pattern is ambiguous: a trading instrument is in a sideways trend. The key support and resistance levels are 1.16700 and 1.17000, respectively. We recommend opening positions from these marks.

The news feed on 2018.08.01:

- The index of economic activity in the manufacturing sector in Germany at 10:55 (GMT+3:00);

- ADP nonfarm employment change at 15:15 (GMT+3:00);

- The index of economic activity in the US manufacturing sector from ISM at 17:00 (GMT+3:00);

- Fed interest rate decision at 21:00 (GMT+3:00).

Indicators do not send accurate signals: the price is testing 200 MA.

The MACD histogram is in the negative zone, but above the signal line, which gives a weak signal to sell EUR/USD.

Stochastic Oscillator is in the neutral zone, the %K line is above the %D line, which indicates the growth of the currency pair.

Trading recommendations

Support levels: 1.16700, 1.16400, 1.16100

Resistance levels: 1.1700, 1.17300, 1.17600

If the price fixes below 1.16700, we recommend considering sales of EUR/USD. The movement is tending to 1.16400-1.16100.

Alternative option. If the price fixes above the already "mirror" resistance level of 1.17000, the EUR/USD quotes are expected to grow. The movement is tending to 1.17300-1.17600.

The GBP/USD currency pair

Technical indicators of the currency pair:

Prev Open: 1.31359

Open: 1.31179

% chg. over the last day: -0.11

Day's range: 1.31083 – 1.31265

52 wk range: 1.2361 – 1.4345

Yesterday, there was a variety of trends on the GBP/USD currency pair. At the moment, the technical pattern is ambiguous. Local support and resistance levels are 1.30900 and 1.31300, respectively. The positions should be opened from these marks. We recommend paying attention to the news feed of the United Kingdom and the United States.

At 11:30 (GMT+3:00), the index of economic activity in the UK manufacturing sector will be published.

The price has fixed below 50 MA and 200 MA, which indicates the power of sellers.

The MACD histogram is in the negative zone, but above the signal line, which gives a weak signal to sell GBP/USD.

Stochastic Oscillator is located near the overbought zone, the %K line is above the %D line, which gives a signal to buy GBP/USD.

Trading recommendations

Support levels: 1.30900, 1.30500, 1.30000

Resistance levels: 1.31300, 1.31700, 1.32000

If the price fixes below 1.30900, we recommend looking for entry points to the market to open short positions. The movement is tending to 1.30500-1.30300.

Alternative option. If the price fixes above the resistance of 1.31300, the GBP/USD currency pair is expected to grow. The movement is tending to 1.31700-1.32000.

The USD/CAD currency pair

Technical indicators of the currency pair:

Prev Open: 1.30315

Open: 1.30117

% chg. over the last day: -0.13

Day's range: 1.30152 – 1.30254

52 wk range: 1.2059 – 1.3795

During yesterday's trading, the USD/CAD currency pair slightly weakened. The Canadian dollar was supported by positive statistics on Canada GDP. The indicator rose to 0.5% in May, although investors forecasted a value of 0.3%. At the moment, the technical pattern is ambiguous. Local support and resistance levels are 1.30000 and 1.30350, respectively. The positions should be opened from these marks. We recommend paying attention to the dynamics of oil quotes, as well as to economic statistics from the US.

The news feed on the economy of Canada is calm.

Indicators point to the power of sellers: the price has fixed below 50 MA and 200 MA.

The MACD histogram is in the negative zone, but above the signal line, which gives a weak signal to sell USD/CAD.

Stochastic Oscillator is in the neutral zone, the %K line is below the %D line, which also gives a signal to sell USD/CAD.

Trading recommendations

Support levels: 1.30000, 1.29600

Resistance levels: 1.30350, 1.30800, 1.31300

If the price fixes below the round level of 1.30000, we recommend considering sales of USD/CAD. The movement is tending to 1.29600-1.29400.

If the price fixes above 1.30350, it is necessary to look for entry points to the market to open long positions. The target movement level is 1.30800-1.31000.

The USD/JPY currency pair

Technical indicators of the currency pair:

Prev Open: 111.120

Open: 111.787

% chg. over the last day: +0.69

Day`s range: 112.084 – 112.105

52 wk range: 104.56 – 114.74

The bullish sentiment is observed on the USD/JPY currency pair. During yesterday's and today's trading sessions, the growth of quotes has exceeded 100 points. At the moment, the trading instrument is moving in the range of 111.850-112.200. Positions should be opened from the key support and resistance levels. The trading instrument has the potential for further growth.

The news feed on the economy of Japan is calm.

Indicators point to the power of buyers: the price has fixed above 50 MA and 200 MA.

The MACD histogram is in the positive zone, but below the signal line, which gives a weak signal to buy USD/JPY.

Stochastic Oscillator is located in the overbought zone, the %K line has crossed the %D line. There are no accurate signals.

Trading recommendations

Support levels: 111.850, 111.500, 111.150

Resistance levels: 112.200, 112.550, 112.850

If the price fixes above the resistance level of 112.200, further growth of the USD/JPY quotes is expected. The movement is tending to 112.550-112.850.

Alternative option. If the price fixes below the level of 111.850, we recommend considering sales of USD/JPY. The movement is tending to 111.500-111.150.

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer,
and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.